Tesla’s Entry Points and Exit Targets After Political Volatility

Those who invest in shares of Tesla (NASDAQ:TSLA) Inc. know that they are signed up for one of the wildest roller coaster rides in the stock market today, not only because the stock has been historically volatile but also because the company’s CEO, Elon Musk, is starting to get involved in other areas that could potentially turn his attention away from what needs to be done to secure Tesla’s leadership and future.

As most are aware, Musk has resigned from his role in a special government agency called the Department of Government Efficiency (DOGE, for short). While the intentions were good regarding the type of work this agency was to accomplish, disagreements between Musk and President Trump have driven two opposing views to a volatile week in Tesla stock, leaving some shareholders to incur losses as collateral damage.

Seasoned Wall Street participants would see the recent panic as an opportunity in the technology sector, especially for shareholders eyeing lower prices. For Tesla, however, this is where the charts become particularly useful.

This is important, especially when viewed through an auction lens, because there is an obvious price that Tesla could reach before providing an optimal entry point.

Gaming: The Future of Tesla

Now that Musk can focus his energy on Tesla’s development, one clear objective will be fulfilled in the coming months and quarters. The race to make the robotaxi dream a reality should return to the CEO's forefront, especially as new competition has entered the scene.

Waymo, an autonomous driving platform owned by Alphabet (NASDAQ:GOOGL) Inc., has already made significant progress in this space, averaging up to 250,000 rides per week. Whether it is due to technological superiority, market share, or sheer adoption from end users, Tesla now has a lot of ground to make up in this regard.

This is one positive catalyst investors can look forward to today, especially as Musk is set to come back to the ground floor at Tesla. With this in mind, investors should still command a price for the stock that prices out most (if not all) of the potential downside that could arise from this current political feud.

With a robotaxi announcement expected in the coming weeks of June 2025, it is high time for investors to strategize their positioning in the stock before the information spreads out more quickly than they can react to it. For this reason, the following technical level should also be kept in mind.

Where Tesla Can Be Bought

Examining the one-year chart for Tesla, investors can identify a significant inefficiency. During late April 2025, the price jumped aggressively from $259 per share to $288 per share in a matter of hours, creating a pattern that some would call a buy-side imbalance, where the auction left little to no time for investors to enter and chase the upward momentum in price.

On a psychological level, this means there are still bulls waiting on the sidelines for this price, making it a mental and emotional anchor for buy orders to be executed again. In fact, the $270 mark represented solid support due to this development, where impatient buyers couldn’t wait to retest the lower end of the breakout and had to get in.

After falling by roughly 15% in one week, the $270 area acted as a backstop for further selling, accurately fulfilling this technical and psychological setup. Therefore, those looking to buy have two choices from today’s $295 per share price. One option is to make room for the price to move up toward the $310 mark again, where the opposite pattern formed.

On the way down, numerous sell-side inefficiencies formed, as a fast auction didn’t allow sellers to exit and cut their losses. Given the uncertainty, it wouldn’t be too far from reality to expect these beaten-down bulls to revisit that price before letting go of their shares.

Get The News You Want

Read market moving news with a personalized feed of stocks you care about.

Get The App

So now investors can watch the reaction in Tesla’s price in this range; if it continues to act as “resistance,” then they can rest assured that the lower price area near $270 will be tested again. At this point, they will have another incentive to open new positions on the long side.

Here’s a good sign that supports this view: up to $20 billion of institutional buying took place over the recent quarter for Tesla stock, a period that overlaps with this inefficiency, with the stock reaching the $270 mark, indicating a footprint of institutional liquidity advantages being taken.

The map is laid out, and at 60% of its 52-week high, Tesla stock offers new investors a great risk-to-reward ratio moving forward, especially with a new $500 per share price target set by Dan Ives, an analyst from Wedbush Securities as of early June 2025. In his view, Tesla promises a rally of up to 70% from its current level.

Written By: MarketBeat.com